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In addition to the South's lack of industry, most capital was invested in slaves and land-both of these are non-liquid. The South's lack of a large supply of liquid capital made it difficult for Southerners to buy munitions for the war effort. As a result of the South's lack of liquid capital the North enjoyed a decided advantage.

The Confederacy was also unable to raise money for the war effort effectively. In war there are three ways to raise capital: printing currency, issuing bonds, or through taxing.

Finally, the most significant reason was their lack of gold.

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